Globalization enables goods, services, and cultural and social influences to be gradually similar across the world. This could have both positive and negative consequences, such as the increased knowledge spillovers between countries or the outflow of natural resources from less developed countries to more developed countries at low prices. Technology plays a crucial role in globalization because it fosters competitive advantage and economic growth. This motivates governments to enact technology policies to supports research and development (R&D) activities as well as innovation activities, e.g. by allowing firms to form joint research ventures without the threat of antitrust enforcement, by granting an individual or firm a limited right to exclude others from using its ideas (i.e. in form of a patent on its invention) or encouraging private R&D spending via tax credits and/or subsidizing R&D projects. National innovation systems (NIS) are constructed to achieve this goal. Some globalization-related potentials or challenges for NIS include tax policies, migration, and intellectual property rights (IPR).
Table of Contents
1. Tax Policies
2. Migration
3. Intellectual Property Rights (IPR)
Objectives and Topics
This paper examines the impact of globalization on national innovation systems, focusing on how economic interdependence influences governmental technology policies and the developmental trajectories of nations. The research analyzes the mechanisms through which global economic factors shape domestic innovation landscapes.
- The relationship between globalization, technology, and economic growth
- The architecture and actors within national innovation systems
- Impacts of tax competition and globalization on innovation
- Dimensions of "brain drain" and human capital migration
- The role of Intellectual Property Rights in commercial innovation
Excerpt from the Book
Intellectual Property Rights (IPR)
In their research article, Archibugi and Filippetti made the following statement.
“Creative activities are in fact time consuming and costly while it is always uncertain if they will produce something that will generate economic returns. Once the inventor has discovered a new device or a musician has written a new symphony, it becomes easy for others to exploit their outcomes at very low costs. Without legal protection, inventors and authors are not in a position fully to exploit their works and appropriate the economic returns. As a result, in the absence of public regulation there would be an under-investment in creative activities that would be below a socially desirable level.” (22)
Therefore, patent protection – laws that prevent inventions from being commercially made, used, distributed, imported or sold by others without the patent owner’s consent – is a significant aspect of IPR as it promotes technological and business competitiveness, but it may also contract FDI because the stronger uniqueness requirements increases the cost of production (23).
Chapter Summary
1. Tax Policies: This chapter analyzes how globalization and tax competition influence government strategies to attract capital, noting that fiscal incentives for R&D are critical for maintaining competitive national innovation systems.
2. Migration: This section explores the concept of "brain drain," detailing how the movement of high-skilled labor from smaller economies to wealthier OECD nations impacts human capital, productivity, and regional innovation potential.
3. Intellectual Property Rights (IPR): This chapter discusses the role of legal protections like patents in fostering innovation, while highlighting the controversies regarding access to essential goods during global crises.
Keywords
Globalization, National Innovation Systems, Technology Policy, Economic Growth, R&D, Tax Policies, Tax Havens, FDI, Migration, Brain Drain, Intellectual Property Rights, IPR, Patent Protection, Innovation, Competitive Advantage
Frequently Asked Questions
What is the primary focus of this paper?
The paper fundamentally addresses the intersection of globalization and its socio-economic consequences, specifically how these global forces influence national innovation systems and the necessity for strategic government intervention.
What are the central themes covered in the text?
The core themes include technology policy, the structure of innovation systems, the impact of international tax competition, the consequences of migration (brain drain), and the implementation of Intellectual Property Rights.
What is the primary research objective?
The objective is to analyze how globalization presents both potentials and challenges for national innovation systems and how governments utilize technology policy to foster economic growth and competitive advantage.
Which scientific approach does the author use?
The author employs a descriptive and analytical review of existing literature, reports from international organizations like the OECD and EU, and conceptual frameworks regarding innovation to illustrate global trends and policy responses.
What topics are discussed specifically in the main body?
The main body focuses on three pillars that disrupt or enhance innovation systems: international tax policies, the migration of high-skilled human capital, and the legal frameworks surrounding Intellectual Property Rights.
Which keywords best characterize this research?
Key terms include Globalization, National Innovation Systems, Technology Policy, Brain Drain, and Intellectual Property Rights.
How does the author define a "National Innovation System"?
It is defined as a system of interconnected institutions responsible for creating, storing, and transferring the knowledge, skills, and artifacts that constitute new technologies.
What is the main argument regarding Intellectual Property Rights?
The author argues that while patent protection is essential to incentivize creative and R&D activities, it can create economic controversies when it limits access to essential goods, such as medical products during a pandemic.
What role does "tax competition" play according to the author?
Tax competition is identified as a factor where countries lower tax rates or create special regimes to attract capital, which can lead to the emergence of "tax havens" and necessitate international counter-measures like the BEPS initiative.
- Arbeit zitieren
- Christian Yonathan Wiratmo (Autor:in), 2022, Globalization and its Potentials and Challenges for National Innovation Systems. A Technology Policy Perspective, München, GRIN Verlag, https://www.grin.com/document/1354154
